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🇳🇬 Nigeria /Economy & Trade

African nations study Nigeria's local content model for resource development

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • African nations are studying Nigeria's local content model to establish their own frameworks for resource development.
  • The Nigerian Content Development and Monitoring Board (NCDMB) hosted a delegation from Ghana's National Petroleum Corporation to share knowledge on local content development.
  • The NCDMB emphasizes building internal capacity in hydrocarbon-producing countries to reduce reliance on foreign technology and leverage Africa's youth population for industrial growth.

African countries are actively studying Nigeria's local content model, seeking to replicate its success in developing their own resource sectors. The Nigerian Content Development and Monitoring Board (NCDMB) recently hosted a delegation from Ghana National Petroleum Corporation (GNPC) for a knowledge-sharing visit focused on Nigeria's local content development framework.

Africa has evolved over the last three to four decades, growing its hydrocarbon resources to over 120 billion barrels of crude oil reserves and 800 trillion standard cubic feet of gas, which constitute over 10 per cent of hydrocarbon resources globally.

— Felix Ogbe, Executive Secretary of NCDMBHighlighting Africa's significant hydrocarbon resources and the need for local development.

Felix Ogbe, Executive Secretary of NCDMB, highlighted the responsibility of African hydrocarbon-producing nations to prioritize local content and decrease dependence on foreign technology. He noted that Africa holds over 10 percent of global hydrocarbon resources, with reserves of more than 120 billion barrels of crude oil and 800 trillion standard cubic feet of gas. Ogbe stressed the importance of building internal capacity for exploration and production, advocating for a shift away from over-reliance on external expertise.

Ogbe emphasized that Africa's large youth population presents a significant advantage for industrial development, provided they are equipped with relevant skills. He explained that the NCDMB has transformed from mere policy directives into a full-fledged institution, solely responsible for local content in Nigeria. The board's Nigerian Content 10-Year Strategic Roadmap is built on five pillars: technical capability development, compliance and enforcement, enabling business environment, organizational capability, and sectoral and regional markets, supported by funding and regulatory assistance.

We have evolved from a policy to an institution.

— Felix Ogbe, Executive Secretary of NCDMBDescribing the NCDMB's transformation and its role in local content development.

A key initiative mentioned is the Nigerian Content Intervention Fund, managed by the Bank of Industry and the Nigerian Export-Import Bank. This fund provides single-digit loans to indigenous service companies, enhancing their competitiveness. The NCDMB's efforts aim to create an environment where local service companies can thrive and contribute significantly to the nation's energy sector.

What we have done is to create that access to make the local service companies competitive.

— Felix Ogbe, Executive Secretary of NCDMBExplaining the impact of the Nigerian Content Intervention Fund.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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